Is the business good?
How good a business is NSSC?
Napco Security Technologies, Inc. earns 59% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
59%
Return on invested capital · cost of capital 9.0% · 50 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Security & Protection Services median 18% · 12 months to Q3 2026
- Cash conversion
- 1.53×
Cash conversion · 1.12× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 9.9% |
| FY2021 | 16% |
| FY2022 | 13% |
| FY2023 | 18% |
| FY2024 | 28% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q3 2026
- 57%
- Operating margin12 months to Q3 2026
- 20%
- Net margin12 months to Q3 2026
- 19%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 6.8%
- Revenue, trailing twelve months
- $197M
- Free cash flow, trailing twelve months
- $56M
- Net income, trailing twelve months
- $37M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 59%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Security & Protection Services
Ranks #2 of 7 by Smart Score